Outdoor-lifestyle retailer Essay Example for Free

Outdoor-lifestyle retailer EssayExecutive Summary BBQfun entrust be the leading outside-lifestyle retailer, catering to the growing take a look for furnishing rising and renovated dwellings in the greater Brisbane ara. The assortment offer of BBQs, outdoor furniture and BBQ nettleories bequeath position BBQfun as best inclass for outdoor-lifestyle retailing. BBQfun volition reinvent the way people stigmatise for outdoor-lifestyle products. BBQfun bequeath build its reputation on offering the fullest assortment of products possible in our chosen fields, incorporating two topical anesthetic and imported advanceds with products sold on easy to do it long- term stipend final causes. Our by and by gross sales service and 3 form ensures go forth find traction with a securities industry dominated by low- feature. Situation psychoanalysis BBQfun is close to entering its fifth year of operation.Te initial rollout of positions has been well received, and market i s now lively to its continued success and future(a) profitability. The shop offers wide-ranging outdoor-lifestyle items on easy to take away payment terms and supplies a three year guarantee on every item sold. The prefatorial market need is for fiber, fashionable and unique outdoor-lifestyle items that caters to the dwelling house-proud needs of our market. commercialize Summary BBQfun possess good data about the market and knows a great deal about the common attributes of our almost prized and incorruptible clients. BBQfun will leverage this information to better under stand out who is served, their specific needs, and how BBQfun can better communicate with them.Market Demographics Accessibility. The patron can gain easy access to the store with minimal wait. Customer service. The patron will be impressed with the after sales service and Guarantees. Competitive pricing. All products/services will be competitively priced relative to comparable high-end outdoor-lifestyl e lines. Above all, BBQfun believes that easy to access stores with extensive choices in our chosen fields, that are sold on an easy to manage payment plan with a three year guarantee are the keys to our nodes needs and wants.Market TrendsThe market trend for outdoor-lifestyle stores is headed toward a more advanced(a) and informed customer. The outdoor-lifestyles patron today relative to yesterday is more sophisticated in a tally of different ways. Item quality. The preference for high-quality items is increasing as customers are learning to estimate the qualitative differences. Unique. Our patrons appreciate the opportunity to include outdoor-lifestyles in their home that stand out from the mass produced and sold low quality items. Selection. People are demanding a larger selection of choices, they are nolonger accepting a limited offer in outdoor-lifestyles. The reason for this trend is that within the last couple of years in that location has been an explosion of media in the form of TV shows and magazines that induct progressd exotic and different outdoor-lifestyles.Our patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated patron in larger city markets such as Sydney or Melbourne where there has been more choices accessible. BBQfun strongly believes that customers are more interested in roll up of products, after sales service and easy to manage payments than any other(a) issues. These are the reasons that they will shop with us and become loyal patrons. Technological buildments with the broadband rollout across greater Brisbane and Australia is opening up significant opportunities for internet shopping and for providing information for our customers about our product range.Market GrowthIn 2008, the field outdoor-lifestyle market reached $300 million dollars. Outdoor lifestyle sales are estimated to grow by a t least 6% for the next few years. This growth can be attributed to several different factors. The greater disposable business firm income from the two income families, the greater availability of affordable and interesting quality imports with the high set of the Australian dollar and the merchandise by popular TV shows like Homes Beautiful and Better Outdoor-lifestyles. parsimonyBased on economic forecasts, BBQfun assumes that interest rates are staying steady and so will have no affect on disposable income. The same assumption is made about employment levels, where BBQfun assumes that unemployment levels ride out the same at 4.7%.PoliticalFrom research carried out, BBQfun identified that the Government focus on and emphasis in future legislative direction will be about growing the economy and population base which BBQfun sees as a positive for their business model. There is also a strong weight-lift for environmentally dependable business practices in the legislative frame work. BBQfun, as business operating in Australia, will abide by the law in all its dealings and comply with all legislation that impacts on its business activities. jampack AnalysisThe following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing BBQfun.Strengths Excellent staff who are highly skilled and knowledgeable about outdoor-lifestyles. Great retail space that is noctilucent, obligational and efficient for a commercial urban district. High customer loyalty among repeat customers. Assortment offerings that exceed competitors offerings in quality, range and accessibility.Weaknesses A limited market bud sit to develop brand awareness due to the lack of critical mass and store cover. The struggle to continually fund the growing long term repayment plans taken out by our customers.Opportunities A growing market in a high growth theater of operations with a significant percentage of the target market still not aware of BBQfuns offer. increase sales opportunities outside of our target area greater Brisbane.Threats Competition from local anaesthetic independents that can reduce prices as owner operators lower than our staff run stores. Competition from National chains moving into the Brisbane market. A rectify in the economy reducing customers disposable income spent on outdoor-lifestyles.CompetitionNational Competition The kibibyte has a limited selection but significant depth. All Australian made. No significant marketing or promotion. The price point is high, but the quality of products are quite good. Not in Brisbane. more often than not in Sydney and Melbourne. BBQs R us Broad range of outdoor-lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on establish markets. sloshed in the replacements segment. Not in Brisbane. Mostly in Melbourne and Adelaide. Outdoorz Large operations of only a few stores per city. Mass markets outdo or lifestyles at good value prices. No imported goods. Extensive advertising. downcast to medium quality. Not in Brisbane. Strong in the replacement segment rather than new and refurbisheddwellings. Strong in other capital cities.Local Competition All independents. These stores are owned by single owner operators. Ranges vary according to owner preferences. Very little imports. Mostly retailing Australian fabricate goods. Collectively their average item sale price is $250, have a market share of 48%, and are growing at about 8% per year. BBQfun do not see the competitors changing their marketing strategy or product offer in the foreseeable future.Growth and Share Analysis virgin dwellings growth in emf customers 10%. Estimated Brisbane customer numbers in 2010 is 95,000. Renovations growth in potential customers 7%. Estimated Brisbane customer numbers in 2010 is 35,000. Replacement growth in potential customers 5%. Estimated Brisbane customer numbers in 2010 is 120,000.Servic e OfferingBBQfun has created a outdoor-lifestyles range of retail products that are differentiated and skipper to competitors. Customers can see the quality of the product as it is displayed in the stores. The following are characteristics of the product1. BBQfuns credit offer is backed by a top tier bank.2. Imported products make up 33% of the assortment.3. The 3 year guarantee is unique in the market place.4. Broadest possible range in chosen fields.BBQfuns prides itself on providing service that is on par if not better than any of the local independent stores and far in excess of the national chains. BBQfun will ensure that all aspects that are concern in the delivery of satisfaction to the customer will work using an integrated approach. At a GlanceThe Prototype BBQfun Store Location a commercial, suburban neighbourhood, or urban retail district. Design bright and functional. Size 1,000 to 1,500 m2. Employees 15 to 20 full time plus casuals Types of transactions 60% cash, 40% on long term repayment plan.Keys to SuccessLocation.BBQfuns site selection criteria are critical to success. Scott Bremmer, designer arrayner of an international chain, helped us identify the following site selection criteria New dwelling populations. shop patterns requiring easy access. Customer car park counts.Critical IssuesBBQfun is still in the speculative stage as a possible franchise concept or joint venture. Its critical issues are Committed to sales growth which allows for greater options in import assortments and in reduced price with volume buys. This will promote our uniqueness and contribute to improved profit margins. Continue to finance the easy manage long term repayment plan for customers. Locate in easy access sites close to the growing markets in new dwelling development. market Strategy BBQfuns advertising budget is set at $250,000 for the year.The advertising architectural plan will target local letter-box drops, radio and magazines. BBQfuns will do direc t mail and local advertising, with coupon inserts in the BrisNews magazine likely to be the most successful of the campaigns. BBQfun will try to get articles about BBQfun into the BrisNews magazine. Previous features in the BrisNews magazine has seen a dramatic increase of sales immediately after the article was published.MissionBBQfuns mission is to provide customers with the most extensive assortment of quality outdoor-lifestyle products available in the market. Our after sales service is second gear to none supported by our easy to manage long term repayment plans which make unique, imported and high quality outdoor-lifestyle affordable to all. BBQfun exist to describe and maintain outdoor-lifestyle customers wishing to purchase products that give our customers pride in their homes. Our services will exceed the expectations of our customers.Marketing Objectives1. Increase sales from $15million per year to $20million per year in the nextthree years 2. Increase our loyalty custom ers list from 10,000 to 16,000. 3. Establish brand recognition in Brisbane so that at least 2 in 3 people recognise our brand in a random survey taken in 18 months time.3.3 Financial Objectives1. A double-digit growth rate for each future year.2. Reduce the overhead per store through disciplined focal point of expenses.3. Continue increase our gross profit margins.Target MarketingThe market can be segmented into three target populations New dwellings generally want to purchase holy suites. Typically shopped as couples. Price sensitive to a point but co-ordination is the highest priority. Renovations demand for high quality and different items. Unique and exotic over rides price concerns. Replacement basic functional products that replace and gloomy or worn item. Single shopper. Cheap price required. The BBQfun customers are mostly aged between 20 and 50, making up 50% of the new and renovated dwelling market. Outdoor-lifestyle stores have been very successful in stand alone, extensive car park access, close to new housing estates being established. These areas have families who have household disposable incomes of over $40,000 per year. Combining several key demographic factors, BBQfun arrives at a profile of the primordial customer as follows Sophisticated people who are house proud. Shoppers who will drive to an easy to access store. A customers who requires payment plans to spread their commitment over an extended period. Renovators and new home builders 20-50 year olds layBBQfun will position itself as a broad assortment, quality, unique outdoor-lifestyle retailer. Brisbane consumers who appreciate high-quality and uniqueness will discover the value and unique offerings of BBQfun. Patrons will be single as well as families, ages 20-50. BBQfuns posture will leverage their competitive edge Product. The product will be wide ranging, quality and unique. It offers the house proud customer a differentoption from the cheap mass produced offer preval ent in the market Service. BBQfun offer the only 3 years guarantee in the market. Our easy play payment scheme is just what our mortgage repaying customers welcome. Our experienced staff can assist with product knowledge second to none in the industry. By offering a superior service in range and uniqueness, BBQfun will excel relative to the competition and achieve our objectives.Strategy PyramidsThe single objective is to position BBQfun as the postmortem outdoor-lifestyles store in the greater Brisbane area, commanding a majority of the market share within pentad years. The marketing strategy will seek to get-go create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals. The message that BBQfun will seek to communicate is that BBQfun offers the widest, most exotic, easy access outdoor-lifestyle products in Brisbane. This message will be communicated through a variety of methods. The first will b e direct mail. The direct mail campaign will be a way to communicate directly with the consumer.BBQfun will also use ads and inserts in Brizzy magazine.The last method for communicating BBQfuns message is through a grassroots PR campaign. This campaign will invite people from Brizzy for dejeuner to get articles written about BBQfun into the news. Because of this level of effectiveness and low/zero damage, BBQfun will work heavy to get press in the Brizzy. BBQfun also believe that the local patrons far prefer to receive information from the store via flyers in the letterbox.Marketing MixBBQfuns marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing. While BBQfun will price at comparable prices for comparable quality, it will not be cheap. We push value over cheap and back this up with a 3 year guarantee. Distribution. BBQfun products will be distributed through a chain of retail stores which cus tomers can access easily via the large car parking arrangements. Advertising and Promotion. The most successful advertising will be ads and inserts in the Brizzy as well as a PR campaign of informational articles and reviews also within the Brizzy. Promotions will take the form of in store entertainment and competitions with prizes to exotic overseas destinations. Customer Service. BBQfuns philosophy isthat whatever needs to be through with(p) to make the customer happy must occur, this investment will pay off with a ferociously loyal customer base who is extremely vocal to their friends with referrals.Product developmentIt is envisaged that new products will be developed on a regular basis in line with changes in customer try out which is targeted at every 12 months. The plan for product testing is to engage market research firms. By getting feedback from these firms, changes can be made or products canned so that only tested and be products make it onto the store assortment l ist.Marketing ResearchDuring the initial phases of the marketing plan development, several focus separates were held to gain insight into a variety of patrons of outdoor-lifestyle stores. These focus groups provided useful insight into the decisions, and decision making processes, of consumers. An extra source of market research that is dynamic is a feedback mechanism based on a insinuation card system in store. The last source of market research is competitive analysis/appreciation. BBQfun management will continually visit local outdoor-lifestyle stores for two reasons.The first is for competitive analysis, providing BBQfun with timely information regarding other stores service offering. The second reason is that local business owners, are often part of an informal fraternal organization where they support each others business. Financials, Budgets, and Forecasts This section will offer a monetary overview of BBQfun as it relates to the marketing activities. BBQfun will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.Break-even AnalysisThe Break-even Analysis indicates that $1.1 million in sales per year will be needed to reach the break-even point. Fixed cost are estimated at $150,000. Variable costs are 40% of sales, therefore sales of $1.0 million will be sufficient to pay for the fixed and variable cost.Sales ForecastThe first year of the plan will be used to get the cafe up and running. By year two things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two. Gross profit isanticipated at 50%. Ongoing sales forecasting will be to use the services of Cannons Consultants who will advise on all aspects of the marketing function that BBQfun will be engaged with. Cannons will also be given access to the marketing cost data so that they can periodically examine and validate marketing costs in line with industry benchmarks. They have always be en the preferred consultants because they are locally based unlike the national group of consultants, Brown Holingsworth, based in Melbourne.